California Gov. Arnold Schwarzenegger vetoed S.B. 1167, an
anti-steering bill that would have required insurers to ask
policyholders if they’ve chosen a repair shop prior to suggesting one.
Schwarzenegger said due to a delay in passing the state’s 2008-2009
budget and the fact that the bill is not of “the highest priority” to
the state, he declined signing it.

The California Senate approved S.B. 1167 (Sen. Pat Wiggins, D-Santa Rosa) in August.
The Collision Repair Association of California (CRA) originally
sponsored the bill, which was introduced in February, until it became
obvious that the measure didn’t have enough votes to be passed by the
Senate Banking, Finance and Insurance Committee. Wiggins then amended
the bill to require that the insurance commissioner form a task force
to study issues addressed by Insurance Code Section 758.5 (the
anti-steering statute), and the state’s Assembly and Senate
subsequently passed it.

When the bill, which insurers have opposed, was first introduced,
then-CRA Executive Director Allen Wood said, “By opposing the bill,
insurers are admitting they currently violate the law, which protects
consumer choice by not allowing an insurer to suggest or recommend an
alternative shop to claimants who have already selected a repairer.”

After it was vetoed, the bill was sent back to the Senate, where it’s now listed under “unfinished business.”